Bitcoin has begun to appear in all sorts of places, and now also in the Real Estate market. Lately, there have been some sellers in every kind of real estate market that accept Bitcoin in order to sell their property.
It is worth to mention that, the houses placed for sales in Bitcoin, receive a surprisingly high interest from the media. For example, a mansion in Notting Hill which is on sale for £17 million has seen unexpected interest since it went on sale in October. The co-founder of property firm London Wall, Lev Loginov, who is selling the property, said:
“Last week we had 15 viewings. They are coming from Asia. I’m sure we haven’t had anybody older than 30.”
Also, a small abode in Grimsby, on Northeast coast of England, gathered media attention worldwide. The reason why is because it had a Bitcoin price tag on it! At the moment, digital currencies seem to amaze the crowd when they show up in new markets, making them newsworthy. Although, as more people do it, the media will probably move on.
As we mentioned before, those who are showing interest in investing in properties as big as a £17 mln mansion, are all at a young age. So, we can safely assume that the adoption curve for the cryptocurrency is much higher among young adults.
Loginov claims that it is early miners who own a large number of Bitcoins:
“Many young people got involved in digital currencies at the early stage. Most of them made a profit from mining Bitcoins, and now they want to acquire assets.”
Is it just a marketing gimmick?
The founder of Houzen, Saurabh Saxena, believes the reason that people investing in property is for low-risk returns. This doesn’t match well with the typical Bitcoin investor’s risk profile. Saxena said:
“I strongly believe that Bitcoin as an exchange medium or as a currency is not sustainable. It’s only a marketing gimmick. Developers in general raise money from pension funds and private equity. When a pension fund invests in real estate, they would expect a return of about 8 to 10 percent. Real estate is a low to medium-risk asset class, and as a result it offers low to medium returns. Bitcoin is volatile and hence an extremely high risk as a transaction medium.”